Sustainable Growth Approaches

💭 "Sometimes sustainability costs more. So what?" This bold question headlines Andrew Winston’s latest article in MIT Sloan Management Review. He challenges the outdated idea that sustainability initiatives must always deliver immediate, short-term financial gains to be worthwhile. Here are three key insights: 1️⃣ Strategic decisions often cost more upfront—but they’re worth it: Businesses routinely invest in R&D, marketing, or technology upgrades that cost more initially but unlock long-term value. Sustainability is no different. Winston shows how initiatives like adopting low-carbon materials may raise short-term costs but position companies for future success. 🌍 2️⃣ The cost of inaction far outweighs short-term expenses: Ignoring sustainability comes with immense risks, as climate change disrupts operations and renders regions uninhabitable. Inaction today will halt tomorrow’s economic activity, making sustainability a necessity, not a choice. 3️⃣ Sustainability is a long-term value driver: While it doesn’t always deliver immediate returns, sustainability underpins long-term growth. There’s no economy on a dying planet, and true leaders prioritize enduring value over quarterly gains. In my view, his argument resonates deeply with debates about business’s role in tackling global challenges. It also raises critical questions about how we frame and act on sustainability within our organizations. These insights prompted me to reflect on three essential themes: 🌟 Courage takes centre stage: True leadership means bold decisions, even without immediate payoff. Prioritizing sustainability amid investor scepticism redefines success in a rapidly changing world. 🚀 Sustainability drives innovation: Sustainability isn’t a constraint—it sparks new technologies and products that address environmental goals while securing market leadership. 💡 Reframing costs as investments: We see R&D or digital transformation as investments, yet dismiss sustainability as a cost. Shifting this mindset reveals sustainability as a tool for resilience, advantage, and industry leadership. Andrew’s piece is a powerful call for businesses to rethink outdated notions of cost and embrace sustainability’s transformative potential. 🌱 What do you think? How can we reshape this conversation in our companies and industries? ⬇️ Full article available here: https://lnkd.in/en2RMqs4 #Sustainability #Leadership #Innovation #CorporateStrategy #FutureOfBusiness

Smallholders represent 85% of the world’s 570 million farms but cultivate only 9% of agricultural land.   In Africa and Asia, smallholders cultivate less than one hectare of land. But in countries like Brazil, a smallholder may be a farm of 25 hectares. These differences mean the constraints they face vary across regions.   And while smallholder farmers produce 60% of food calories in poorer countries — 16% globally — their scale often limits them from accessing machinery, finance, and certification. A farmer cultivating less than a hectare cannot easily justify buying a tractor. Certifying products such as tomatoes or avocados for premium markets can cost $1,500-2,000, far beyond their reach.   This is why collective solutions are important. When smallholders organize through cooperatives or producer associations, they can share costs, access markets, and gain bargaining power. Contract farming with processors can also create scale, allowing farmers to meet standards and participate in higher-value supply chains.   Digital tools, extension services, and better data can help farmers make better decisions, but only if they have baseline literacy and connectivity.   Supporting smallholders is not about applying one universal solution. It requires understanding the challenges they face and designing policies and investing accordingly.

By 2053, Black wealth could fall to zero if current trends continue. This isn't just a number—it’s a stark reminder of systemic inequities and the urgency of collective action. But here’s the thing: statistics like this don’t tell the full story. They don’t account for the power we hold to shift the narrative. As leaders, innovators, and culture-makers, we must embrace wealth equity as a core strategy. Here’s how we can start rewriting the script: 1️⃣ Build Financial Resilience Through Ownership: Ownership—whether it’s businesses, real estate, or intellectual property—is one of the fastest paths to generational wealth. Minority-owned small businesses, for example, often overlook opportunities like supplier diversity programs or university procurement partnerships. Tapping into these underutilized resources can accelerate growth. 2️⃣ Invest In Community-Centric Innovation: Many of the apps, services, and products we rely on don’t center our lived experiences. Imagine if our $1.8 trillion in buying power was directed toward solutions built for us, by us. It’s time to create platforms that reflect our values and needs, not just consume them. 3️⃣ Prioritize Financial Literacy and Intentional Spending: Knowledge is power. From understanding the compounding effect of investments to teaching the next generation how to save and build credit, we must normalize financial conversations. Similarly, supporting Black-owned businesses should be an everyday practice—not just a seasonal one. 4️⃣ Collaborate and Scale Thoughtfully: Sometimes, intentional smallness is the path to big impact. Entrepreneurs, for example, don’t need to scale at the expense of sustainability. We can focus on profitable, community-centered growth without being pressured into rapid expansion. This isn’t just about avoiding a financial cliff—it’s about building a future where our contributions are valued, our stories are told, and our wealth is sustained. So, let’s not wait for solutions to come from elsewhere. Let’s lead. Let’s invest in ourselves, our communities, and our collective power. What steps are you taking today to shift this trajectory? I’d love to hear your perspective.

Inaction is the greatest sustainability risk 🌎 A recent white paper from Ramboll examines the growing liabilities linked to inaction on sustainability. As environmental, regulatory, and stakeholder pressures intensify, the absence of meaningful progress is emerging as a material risk with direct implications for business performance. While transformation comes with costs, they are generally predictable and manageable. The costs of doing nothing are not. Regulatory noncompliance, reputational fallout, and talent attrition are becoming common consequences for companies lagging behind market and policy expectations. The report points to loss aversion as a key driver of executive behavior. Boards are more responsive to the risk of erosion in brand, access, or capital than to abstract benefits. Reframing sustainability as a way to protect value, rather than only create it, is proving more effective in securing leadership engagement. Three dimensions of corporate performance are particularly exposed: risk, operations, and growth. From supply chain instability to legal exposure and investor scrutiny, the signals are clear. Sustainability is no longer an external pressure but a factor embedded in day-to-day competitiveness. Operationally, the absence of sustainability integration is affecting cost structures and product relevance. Inefficiencies that were once tolerable are now vulnerabilities in an environment defined by resource constraints and evolving customer expectations. The paper also outlines how growth potential is being reshaped. Leading companies are using sustainability to access new markets, attract financing, and strengthen procurement relationships. Those standing still are not only missing opportunities—they risk being excluded from emerging value networks altogether. A central concern raised is the gap between activity and transformation. ESG reporting, commitments, and campaigns have become widespread, yet many of these efforts remain disconnected from core business models. The result is fragmentation that provides limited strategic protection. Responding effectively means building internal accountability, quantifying exposure, and embedding sustainability into decision-making processes. As the pressure mounts, resilience will depend less on intent and more on the depth of structural alignment. #sustainability #business #sustainable #esg

A few weeks back, I met some old friends and made new ones at the roundtable organized by OCBC, Singapore Business Federation, APEC Business Advisory Council. Thanks for the invitation and session. 🔍 Key Insights from the Sustainable Supply Chain Roundtable 🌍 - Global Emissions: Supply chains account for approximately +60% of all global emissions. SMEs contribute significantly but often lack the necessary resources and knowledge to reduce their emissions effectively. - Regulatory Pressure: Regulatory requirements are increasing rapidly. In 2022, only 18% of large companies reported on ESG metrics. By now, this figure has jumped to 79%. This regulatory pressure is pushing companies to include their supply chains in their ESG reports, increasing the complexity and cost of compliance. - Scope 3 Emissions: Businesses are reporting Scope 1 and 2 emissions , but Scope 3 emissions remain challenging to measure and manage. 🌿 Strategy - Engage Suppliers: Large companies or anchor buyers need to take the lead in engaging suppliers. This involves equipping suppliers with the necessary tools and knowledge to measure and reduce their emissions. Successful programs include ongoing engagement and dedicated support to bridge knowledge and resource gaps, integrating GHG emissions in procurement processes, and requiring suppliers to track and reduce emissions. 🏆 Case Studies - Telco Company: A leading Southeast Asian Telco joined the CDP Supply Chain program to support its 5,000 suppliers. The program started by identifying suppliers and necessary tools, followed by introducing sustainability measurement and reporting. The company plans to incorporate external risk assessment and third-party validation to build a sustainable product database for procurement. - Food and Agriculture Conglomerate: A prominent Asian food and agriculture company trained 43,000 smallholders in its supply network. By deploying its own resources to support smaller suppliers, the company ensured regulatory compliance and continued inclusion of these suppliers in its supply chain, demonstrating a successful model of regulatory adaptation and support for smallholders. 💡 Recommendations 1. Engage Suppliers: Large companies should lead by engaging suppliers and effective programs include regular engagement, support for regulatory compliance, and integration of emissions data in procurement processes. 2. Flexible Measurement: Suppliers should adopt flexible approaches to data measurement, utilizing existing tech solutions and prioritizing initial estimations to improve methodologies over time. Buyers should segment suppliers based on emission profiles and allocate resources accordingly. 3. Build Capabilities: Continuous investment involves training programs, financial support, and pilot initiatives to test and implement sustainable practices. Collaboration with ecosystem enablers can amplify these efforts.

Across Asia, many communities still face barriers to reliable, affordable, and sustainable energy. If we want the transition to be fair and inclusive, we cannot wait until solutions are fully proven before we support them. This is why early-stage impact investing matters. Too many promising ideas struggle at the stage where founders are still closing funding gaps, piloting their technologies, and trying to reach the communities that need them most. At Schneider Electric, this is what we are working to address through Schneider Electric Energy Access Asia (SEEAA). Since 2019, together with Norfund, EDFI Management Company ElectriFI - The Electrification Financing Initiative, and Amundi, we have supported innovative technologies and business models that expand sustainable energy access in underserved markets across Asia, while working closely with founders to help de-risk innovation and scale what works. I also see this same spirit in The Liveability Challenge, which helps build the wider ecosystem around climate innovation by bringing together partners across sectors to close funding and capability gaps, and give early-stage solutions a better chance to scale. I shared more in my latest blog, Why Early Impact Investing Shapes a Fair Energy Transition. I hope you’ll give it a read: https://lnkd.in/gxJMssGC

In the last 7 years of LFS, I have talked to 1000s of founders and realised that sometimes, even the best-intentioned strategies can backfire. And then this would lead to unintended consequences, this phenomenon is known as the “Cobra Effect.” This term originates from a historical anecdote in colonial India, where a bounty on cobras led to people breeding more cobras to claim the reward, ultimately worsening the problem. So, how can businesses avoid falling into the trap of the Cobra Effect? Here are some key strategies: 📌 Design Incentives Carefully: Incentives should promote quality over quantity. For example, rewarding sales teams solely based on the number of new clients can lead to quick, superficial deals rather than fostering long-term relationships. A balanced approach that values customer satisfaction and retention can prevent such pitfalls. 📌 Consider the Context: Business decisions should be tailored to the specific context of the market and the company. A strategy that works in one scenario might not be suitable in another. For instance, aggressive discount campaigns might boost short-term sales but could harm the brand’s long-term value. 📌 Focus on Long-Term Goals: While immediate results are important, a myopic focus on short-term profits can be detrimental. Sustainable growth requires balancing short-term gains with long-term objectives. This includes investing in employee development, innovation, and customer relationships. 📌 Monitor and Adapt: Continuously monitor the outcomes of your strategies and be ready to adapt. If an initiative is leading to unintended consequences, it’s crucial to pivot quickly. Flexibility and responsiveness can help mitigate negative impacts. 📌 Engage Stakeholders: Involve all relevant stakeholders in the decision-making process. This ensures that diverse perspectives are considered, reducing the risk of overlooking potential pitfalls. Transparent communication and collaboration can lead to more robust and effective strategies. By being mindful of these strategies, businesses can navigate the complexities of growth and avoid the unintended consequences of the Cobra Effect. Thoughts? #Entrepreneurship

New Publication!! 🌍 Overcoming barriers to the adoption of water-saving technologies in Jordan: policy pathways for transforming knowledge, attitudes, and practices💧 Authors: MAHA Al-ZU'BI, Ph.D. Nafn Amdar Youssef Brouziyne Jordan is facing a severe water scarcity crisis, worsened by rapid population growth, climate change, and the overuse of limited groundwater. With per capita water availability at just 61 m³/year—far below the global threshold of 500 m³/year—it’s one of the most water-scarce countries in the world. 🌿 The agricultural sector, which consumes nearly 48% of the country’s freshwater, is hit especially hard. The reliance on inefficient irrigation methods has led to low water productivity, particularly in the highlands, where productivity is only JOD 0.36 per m³, far below the potential achievable with Water Saving Technologies (WSTs). 💡 However, several barriers hinder the adoption of these critical technologies: - Financial Constraints 💸 - Limited Extension Services 📚 - Technical Gaps 🔧 - Unequal Access, especially for smallholders and marginalized communities 🚜 Many farmers struggle to integrate WSTs into their practices without proper guidance and support. Aligning farmers' knowledge, attitudes, and practices (KAP) with water conservation goals is key to ensuring the successful adoption of these technologies. 🌱 To address these challenges, a multi-faceted approach is required: 💧Research & Tailored Support: Researchers can pinpoint adoption barriers, while practitioners offer targeted guidance to overcome them. 💧Policymaker Action: Policies should encourage WST adoption through financial incentives, education, and research. 💧Education & Awareness Campaigns: Farmers need to understand the long-term benefits of WSTs for sustainable farming. 💧Financial Support: Subsidies or low-interest loans can help make these technologies more accessible, especially for smallholders. 💧A Farmer-Centric Approach: A Market Systems Development (MSD) strategy can improve the market system surrounding WSTs, while peer learning and strong extension services offer ongoing support. By tackling these issues, we can ensure long-term water security and agricultural productivity for Jordan. Together, we can drive the adoption of water-saving technologies and pave the way for a more sustainable future. 🌱 #WaterSecurity #Agriculture #Sustainability #Jordan #WaterSavingTechnologies #ClimateChange #Innovation #WaterConservation #AgricultureSustainability #FutureOfFarming #MarketSystemsDevelopment International Water Management Institute (IWMI) Read full Policy Brief: https://lnkd.in/epr2fWpT

I've been reflecting on a trend that's all too common in the corporate world — the rise of short-term "professional" leaders hired on three-year contracts, incentivised purely by quick wins. I wonder if the concept of the short-term CEO does more harm than good? As the Founder and CEO of ViewQwest, where we’ve built a sustainable telecom powerhouse over the years, I’ve seen how this approach often backfires on shareholders and the long-term health of organisations. For example, a company in distress brings in a “hotshot” CEO to turn things around. Costs are slashed, quarterly earnings spike, and the stock price climbs. On the surface, it looks like success. But beneath the headlines, innovation slows, morale dips, and the culture that made the company valuable in the first place begins to erode. When the short-term leader moves on, what’s left is often weaker than before. At ViewQwest, we’ve taken a different approach. Long-term vision isn’t a slogan — it’s our operating system. By aligning incentives with sustainable growth, we’ve built a culture of resilience, customer loyalty, and continuous innovation that outlasts market cycles. Real value compounds quietly over time. It doesn’t need to shout every quarter.

I’ve seen 100+ businesses collapse (Rapid growth is the culprit) Here’s how to avoid that trap: Don’t scale too fast. It might look good on paper, But it can quickly become a nightmare. I’ve watched businesses scale too quickly, Only to end up with cash flow problems, overwhelmed teams, And constant stress they didn’t plan for. So, how do you scale without the stress? ➡️ Keep Cash Flow in Check: Growth doesn’t mean much if your cash flow can’t keep up. Don’t stretch your finances too thin. → Fuel growth with profits, not debt. ➡️ Build Systems That Scale: Can your processes handle 100 clients as easily as they do 10? Automation is key - manual processes will slow you down. →Streamline now to avoid headaches later. ➡️ Protect Your Team: Growth is exciting, but can your team handle it? Overloading them will lead to burnout, not progress. → Hire proactively. Don’t wait until it’s too late. ➡️ Make Sure Demand Is Real: Your growth should be driven by consistent demand, not short-term spikes. Are you growing for the right reasons, or just chasing numbers? → Focus on what’s sustainable, not what’s flashy. It takes time and strategy to build a successful business. But that’s what keeps you around for the long run. Before you push for growth, ask yourself: Can I sustain it? If not, rethink your strategy. Smart growth beats fast growth every time.